High demand on the Leipzig residential property market

High demand on the Leipzig residential property market  Leipzig is particular popular amongst creatives; this music, business and university city is currently growing rapidly. The high numbers of people moving to the city, most of all trainees and students from all over Germany, have led to increasing rental and purchase prices on the Leipzig residential real estate market.

“The demand for real estate, in particular in prime locations, has been continuously high. In comparison to many other German cities, maximum price limits for rents and real estate in Leipzig have not been reached. The reason for this is the continuing large supply of real estate in Leipzig,” comments managing partner Christian Rocca, Engel & Völkers in Leipzig.

The city is meeting the high demand for living space by initiating new building projects. I 2012, 797 new apartments were completed thus doubling the number of newly built properties in comparison to 2011. The increased building activity has led to an increase in the number of sales, and proportionally to that the turnover volumes for apartments since 2010. The average sales volume in 2012 was 142,102 Euros. Despite the fact that in the detached and semi-detached house sector 69 objects less were sold in comparison to the previous year, average sales volumes increased by 13 percent to 197,314 Euros.

Investors very active in market

The most desired properties are in the Musik and Bach Quarters, which offer high living and life quality due to their proximity to the Johanna Park and Clara-Zetkin-Park as well as the city centre. The Gohlis-Süd Quarter, with its high number of villas and houses in the Wilhelminian style, is counted as one of Leipzig’s prime locations. Currently the market is characterised by 50 percent owner-occupier and 50 percent investors. “The comparably advantageous property prices offer a high value appreciation potential for both private buyers and investors,” says Rocca.

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Posted in Interiors | Properties.